Warner Bros. Discovery bidding: Paramount Skydance, Comcast, Netflix each ready offers

Warner Bros. Discovery Inc. has attracted interest from Paramount Skydance Corp., Comcast Corp. and Netflix Inc. with each preparing offers ahead of Thursday’s first-round bid deadline, media networks have reported.

While Comcast and Netflix are eyeing Warner Bros.’ film and television library, Paramount has expressed interest in acquiring the entire company. 

Last month, the media network said it had started a formal review of ‘strategic alternatives’ after receiving unsolicited interest from multiple parties.

When Warner Bros started strategic review

David Zaslav, President and CEO of Warner Bros. Discovery, had said in a statement that they have taken the "bold step of preparing to separate the company into two distinct, leading media companies, Warner Bros. and Discovery Global".

A week before that Warner Bros. Discovery had rejected an initial takeover bid from Paramount Global and Skydance Media, telling the suitor that the offer was too low.

Read e4m report on Warner Bros rejecting Paramount' offer 

The company has faced mounting pressure as consumers and advertisers drift from traditional television to streaming. Still, expectations of a buyout have buoyed the stock, which has nearly tripled in the past two months. Warner Bros. now carries a market value of around $57 billion alongside $33.5 billion in debt.

The latest bidding wave was sparked by David Ellison, who recently took control of Paramount. Ellison has already made three offers—reportedly up to $23.50 a share—all rejected. He is expected to increase his bid but remain below the $30-per-share valuation some analysts believe Warner Bros. is seeking. Ellison views the acquisition as a way to strengthen Paramount’s content slate, expand Paramount+ with Warner’s rich library, and merge cable networks across the two companies. His long-term ambition includes boosting combined film production to 30 movies annually.

Ellison’s efforts are supported by his father, Oracle co-founder Larry Ellison, and potentially outside financiers including Apollo Global Management and several Middle Eastern sovereign wealth funds.

Comcast, meanwhile, could integrate Warner Bros. with NBCUniversal, reinforcing its studio and streaming portfolio. Netflix—armed with a strong stock performance this year and comparatively modest debt—sees franchises such as Batman and Harry Potter as valuable additions to its global platform. However, the streamer has never executed a deal of this magnitude.

There remains the possibility that Warner Bros. will reject all offers. The company already has a plan on the table to spin off its cable networks next year, which would allow CEO David Zaslav to retain control of the more profitable studio and streaming operations. The board is expected to reach a final decision by Christmas.